Pound Sterling Price News and Forecast: GBP/USD turns bearish, closes in on important support
|GBP/USD Forecast: Pound Sterling turns bearish, closes in on important support
GBP/USD stays on the back foot and continues to edge lower toward 1.2700 in the European session on Monday. The pair's near-term technical outlook highlights a buildup of bearish momentum.
GBP/USD came under heavy bearish pressure on Friday and erased all of its weekly gains. The US Dollar (USD) capitalized on the upbeat labor market data and forced the pair to push lower as investors reassessed the probability of a Federal Reserve (Fed) rate cut in September. Read more...
GBP/USD Price Analysis: The potential support level is located above 1.2700
The GBP/USD pair trades in negative territory for the second consecutive day near 1.2715 during the early European session on Monday. The stronger US Dollar (USD) broadly drags the major pair lower. Investors await the UK Employment data on Tuesday for fresh impetus, including Claimant Count Change, Employment Change, and Average Earnings data. Any evidence of more layoffs in the UK economy might trigger the expectations of early rate cuts from the Bank of England (BoE) and might weigh on the Pound Sterling (GBP).
According to the 4-hour chart, the outlook of GBP/USD turns bearish as it holds below the key 100-period Exponential Moving Average (EMA). The downward momentum is supported by the Relative Strength Index (RSI), which stands around 37.00, indicating the path of least resistance is to the downside. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.